5/13/2009 @ 6:00AM

Kindle's Future

Amazon’s new Kindle DX due out this summer is, for the most part, a larger version of the Kindle with a 9.7-inch screen aimed at newspapers, periodicals and textbooks.

At a time when most digital devices tout how many different things they can do, Amazon has taken an interesting approach with Kindle. It is not a computer, nor a phone, nor a browser–and it is definitely not a music player. What the Kindle is: a very well-designed e-reader. All of its features and functions are focused directly on the reading experience and nothing more.

It is, in fact, an excellent e-reader, and there may be an increasing demand for excellent e-readers in the corporate world.

Fortunately for the chief information officer, this is not a big support issue (not to mention that demand growth will likely evolve slowly over time). With no operating system or computing capabilities, Kindle doesn’t require tech support. The DX has a native PDF reader, and users can simply e-mail the documents to Kindle or connect via a USB cable. For the most part, the only support is supplying software to publish documents in PDF format. CIOs may need to justify requests for Kindles based on the savings of being able to easily read complex documents without having to go through the hassle and expense of printing a hard document.

Based on pictures of the DX and its larger size, I can see how it would be nice for reading the newspaper at the breakfast table, studying a textbook at my desk or reading a PDF document from work. However, reading a novel while lounging on the sofa or on a plane is another thing entirely. For those situations, the regular 6-inch Kindle seems more appropriate.

What do you think will happen to the Kindle? Add your thoughts in the Comments section.

While it might be nice to have two Kindles, one for casual reading and another for work, study or newspapers, it does present a marketing problem for Amazon. The purpose-built design may have gone too far for some. First, documents are not shareable. If I download a novel to the 6-inch Kindle and later decide to continue reading it on the Kindle DX, I’m out of luck unless I buy another copy and, of course, I lose my bookmarks too. Second, the price for one Kindle, let alone two, is stiff–$489 for the DX and $359 for the 6-inch. It’s unlikely that many people will buy two, so they will have to choose carefully.

The limitations on sharing and the cost may be tough barriers to overcome for many consumers. As a result, other options might become more attractive. Let’s look at Redfly by Celio. Redfly by itself doesn’t anything. It is simply a Windows mobile terminal that connects to your smart phone via Bluetooth and let’s you have a larger keyboard and display for those times when you need it. In some instances, Redfly may be able to eliminate the need for laptops for traveling workers. Priced at about the same or less than the Kindle, Redfly may be an attractive option when additional functionality is valued over readability of documents and books.

Lurking on the horizon is Apple‘s
iTablet. Apple is known for its innovative design and has long been rumored to be on the verge of rolling out an iTablet that incorporates many of the features of its popular iPhone, including the multi-touch capabilities.

At this point there is not a lot that is definitively known about the iTablet, including if Apple will actually release it, but it has a lot of potential. It appears that it may be an iPhone on steroids, incorporating much of the iPhone capability with a larger-sized display and keyboard. While you do not normally expect a traditional computer display to have the readability of the Kindle for documents, I wouldn’t count Apple out in this regard yet. Combining all the other functionality that will come along with it, the iTablet may be a formidable competitor despite Apple’s traditional higher pricing.

Amazon has built Kindle for a niche application. The question is whether there is enough demand in that niche to allow the device to be a long-term, viable product. If the market demand in this niche isn’t strong enough, competing alternatives could doom the Kindle. Personally, I hope Kindle makes it, but only time will tell.

What do you think will happen to the Kindle? Add your thoughts in the Comments section.